Steel Dynamics

Steel Dynamics, Inc., the Fort Wayne, Ind.-based manufacturer, announced Monday that its Board of Directors has authorized the company to construct “a new state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill in the United States,” per a company press release. This is big news—even before it garnered the president’s Twitter attention.

The facility is anticipated to have an annual production capacity of approximately 3.0 million tons with the capability to produce the latest generation of “Advanced High Strength Steel products,” the November 26 press release said.

“The project will include value-added finishing lines, including a galvanizing line with an annual capacity of 450,000 tons, and a paint line with an annual coating capacity of 250,000 tons. The product offering is anticipated to include various flat roll steel products, including hot roll, cold roll, galvanized, Galvalume and painted steel, primarily serving the energy, automotive, construction, and appliance sectors. The current estimated investment is $1.7 billion to $1.8 billion, with anticipated direct job creation of approximately 600 well-paying positions, and numerous opportunities for indirect job growth from other support service providers.”

The company currently expects to locate the facility in the southwestern United States, which it says is strategic “to cost effectively serve not only the southern United States, but also the underserved Mexican flat roll steel market.” Determination of the final site location is subject to state and local government infrastructure and incentive support. Upon final site selection and the receipt of required environmental and operating permits, the company would expect to begin construction in 2020, followed by the commencement of operations in the second half of 2021.

“We believe our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity, and to deliver strong long-term value creation,” said Mark. D. Millett, President and Chief Executive Officer. “We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities. We are excited to announce this investment, which is a culmination of our intentional focus to cost effectively further serve the customers in this growing flat roll steel consuming region, while increasing our steelmaking capacity and value-added product capability. As a site location is finalized and equipment negotiations are completed, we look forward to updating you on this important strategic initiative.”